Reported about 1 year ago
Risky companies are leveraging a recalibration in the leveraged loan market to handle the Federal Reserve's 'higher for longer' stance. By readjusting debt for better terms, they've collectively saved over $1.4 billion in annual interest costs. This comes as investors, facing limited new offerings, are reducing average margins by approximately 50 basis points. With the Fed possibly holding off rate cuts, non-investment grade companies may maintain an edge against higher rates by renegotiating loans, while CLOs play a vital role in this repricing wave.
Source: YAHOO